Estate Sales
What is the meaning of estate sale?
Estate sales occur over a few days to a week and are open to the general public.
An estate sale is a formal process generally triggered by major life events, like the death of an owner, divorce, a significant change in financial status, or a medical condition that requires immediate downsizing.
Advantages of an estate sale
1. An efficient way to get rid of a large number of assets
An estate sale involves selling a large number of items in one go: It’s a practical and efficient way to downsize. Since it typically happens at the house, there’s no need to relocate the items, which can result in huge cost savings.
2. Helps you honor your loved one’s wishes
Your family member might have left a will with their attorney or financial adviser with an estate plan that describes how their personal property should be handled. If they have specifically expressed their desire for an estate sale, that request will have to be followed through.
It’s also important to consider that these personal possessions might hold sentimental value for the deceased. By undergoing an estate sale and not discarding assets through a yard sale, you are honoring their legacy and doing something meaningful with their belongings.
3. Chance of higher profits
When the sales process is done well, there’s a greater chance for profits and returns. Outsourcing this to an estate sale organizer can generate even higher returns.
4. Sustainable way to reuse items
You’re giving a second life to your loved one’s possessions and keeping them out of the landfills.
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Estate Auctions
An estate auction is a public sale to the highest bidder of the personal property and potentially real estate from a deceased person’s estate to settle debts, cover expenses, or distribute assets to beneficiaries. These auctions can involve furniture, antiques, vehicles, and collectibles, and are typically managed by professional auctioneers who handle the process at the residence, an auction house, or online.Â
How estate auctions work
- Assessment: A professional auctioneer or appraiser assesses all items in the estate, which can include everything from furniture, artwork, and jewelry to vehicles and real estate.
- Marketing: The auction company markets the event to a wide audience of potential buyers, including specialized collectors, using online platforms and other advertising.
- Cataloging: Items are professionally cataloged and often photographed. This information is typically shared online for buyers to preview before the auction begins.
- The bidding process: Bidders compete for items, either in-person or online, with the item going to the highest bidder. Competitive bidding can sometimes drive the final price higher than expected.
- Payment and collection: Winning bidders pay for their items, and arrangements are made for them to be picked up or shipped.Â
What Is Liquidation? What are assets?
Liquidation generally refers to the process of selling off a company’s inventory, typically at a big discount, to generate cash. In most cases, a liquidation sale is a precursor to a business closing. Once all the assets have been sold, the business is shut down.
Assets aren’t just inventory. Other business assets that could be liquidated include:
Stores fixtures
In-store decor
Tools
Furniture
Machinery
Office equipment
Packing supplies
Vehicles
Art and other wall hangings
Window treatments and rugs
Liquidation sales often occur as part of a bankruptcy filing, but not necessarily. A business could liquidate most or all of its inventory as part of a move to a new location, thereby saving money on having to transport all of it to a new storefront. The biggest downside of inventory liquidation is that, in many cases, the timetable for liquidating assets is short, so the discounts are steep and the cash earned is much lower than the retail value.